THE COAL BEARING AREAS (ACQUISITION AND DEVELOPMENT) ACT, 1957 

_________ 

ARRANGEMENT OF SECTIONS 

__________ 

SECTIONS 

1. Short title, extent and commencement. 

2. Definitions. 

3. Appointment of competent authority. 

4.  Preliminary  notification  respecting  intention  to  prospect  for  coal  in  any  area  and  powers  of   

competent authorities thereupon. 

5. Effect of notification on prospecting licences and mining leases. 

6. Compensation for any necessary damage done under section 4. 

7. Power to acquire land or rights in or over land notified under section 4. 

8. Objections to acquisition. 

9. Declaration of acquisition. 

9A. Special powers in cases of urgency. 

10. Vesting of land or rights in Central Government. 

11. Power of Central Government to direct vesting of land or rights in a Government company. 

12. Power to take possession of land acquired. 

13.  Compensation for  prospecting  licences  ceasing  to  have  effect, rights  under mining  leases  being 

acquired, etc. 

14. Method of determining compensation. 

15. Costs. 

16. Interest on awards. 

17. Payment of compensation. 

18.  Prospecting  and  mining  to  be  done  by  Central  Government  in  conformity  with  the  Mineral 

Concession Rules. 

18A. Payment to State Governments in lieu of royalty. 

19. Power to delegate. 

20. Appeals. 

21. Power to obtain information. 

22. Power to enter and inspect. 

23. Penalties. 

24. Service of notices and orders. 

25. Protection of action taken in good faith. 

26. Jurisdiction of civil courts. 

27. Power to make rules. 

28. Notifications under Act 1 of 1894 in which proceedings are pending to be treated as notifications 

under this Act. 

1 

THE COAL BEARING AREAS (ACQUISITION AND DEVELOPMENT) ACT, 1957 

ACT NO. 20 OF 1957 

[8th June, 1957.] 
An Act to establish in the economic interest of India greater public control over the coal mining 
industry and its development by providing for the acquisition by the State of unworked land 
containing  or  likely  to  contain  coal  deposits  or  of  rights  in  or  over  such  land,  for  the 
extinguishment  or  modification  of  such  rights  accruing  by  virtue  of  any  agreement,  lease, 
licence or otherwise, and for matters connected therewith. 
BE it enacted by Parliament in the Eighth Year of the Republic of India as follows:— 

 1.  Short  title,  extent  and  commencement.—(1)  This  Act  may  be  called  the  Coal  Bearing  Areas 

(Acquisition and Development) Act, 1957. 

(2) It extends to the whole of India, except the State of Jammu and Kashmir*. 
(3)  It  shall  come  into  force  on  such  date1  as  the  Central  Government  may,  by  notification  in  the 

Official Gazette, appoint. 

2. Definitions.—In this Act, unless the context otherwise requires,— 

(a)  “competent  authority”  means  any  person  appointed  to  be  a  competent  authority  under                  

section 3; 

(b)  “Government  company”  means  a  Government  company  as  defined  in  section  617  of  the 
Companies Act, 1956 (1 of 1956), in which any land or rights in or over land shall have vested under 
section 11; 

(c) “Mineral Concession Rules” means the rules for the time being in force made under the Mines 

and Minerals (Regulation and Development) Act, 1948 (53 of 1948); 

2[(cc) “mining lease” includes a mining sub-lease, and “lessee” shall be construed accordingly;] 
(d) the expression “person interested” includes all persons claiming an interest in compensation to 
be made on account of the acquisition of land, or of the acquisition, extinguishment or modification 
of any rights in or over land, under this Act; 

(e) “prescribed” means prescribed by rules made under this Act; 

(f) “Tribunal” means the Tribunal constituted under section 14. 

3.  Appointment  of  competent  authority.—The  Central  Government  may,  by  notification  in  the 
Official  Gazette,  appoint  any  person  to  be  the  competent  authority  for  the  purposes  of  this  Act;  and 
different persons may be appointed as competent authorities for different provisions of this Act and for 
different areas. 

4. Preliminary notification respecting intention to prospect for coal in any area and powers of 
competent  authorities  thereupon.—(1)  Whenever  it  appears  to  the  Central  Government  that  coal  is 
likely to be obtained from land in any locality, it may, by notification in the Official Gazette, give notice 
of its intention to prospect for coal therein. 

(2)  Every  notification  under  sub-section  (1)  shall  give  a  brief  description  of  the  land  and  state  its 

approximate area. 

(3) On the issue of a notification under sub-section (1), it shall be lawful for the competent authority 

and for his servants and workmen— 

(a) to enter upon and survey any land in such locality; 

(b) to dig or bore into the sub-soil; 

1.  12th  June,  1957,  vide  Notification  No.  S.R.O.  1931  (E),  dated  10th  June,  1957,  see  Gazette  of  India,  Extraordinary,                 

Part II, sec. 3(i). 

2. Ins. by Act 51 of 1957, s. 2 (w.e.f. 12-6-1957). 
*. Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu 

and Kashmir and the Union territory of Ladakh. 

2 

                                                           
(c) to do all other acts necessary to prospect for coal in the land; 

(d)  to  set  out  the  boundaries  of  the  land  in  which  prospecting  is  proposed  to  be  done  and  the 

intended line of the work, if any, proposed to be made thereon; 

(e) to mark such boundaries and line by placing marks; and 

(f) where otherwise the survey cannot be completed and the boundaries and line marked, to cut 

down and clear away any part of any standing crop, fence or jungle: 

Provided that no person shall enter into any building or upon any enclosed court or garden attached to 
a  dwelling  house  (unless  with  the  consent  of  the  occupier  thereof)  without  previously  giving  such 
occupier at least seven days’ notice in writing of his intention to do so. 

(4) In issuing a notification under this section the Central Government shall exclude therefrom that 
portion of any land in which coal mining operations are actually being carried on in conformity with the 
provisions  of  any  enactment,  rule  or  order  for  the  time  being  in  force  or  any  premises  on  which  any 
process  ancillary  to  the  getting,  dressing  or  preparation  for  sale  of  coal  obtained  as  a  result  of  such 
operations is being carried on are situate. 

5. Effect of notification on prospecting licences and mining leases.—On the issue of a notification 

under sub-section (1) of section 4 in respect of any land— 

(a)  any  prospecting  licence  1[which  authorises  any  person]  to  prospect  for  coal  or  any  other 

mineral in the land shall cease to have effect; and 

(b)  any  mining  lease  2***  shall,  in  so  far  as  it  authorises  the  lessee  or  any  person  claiming 
through him to undertake any operation in the land, cease to have effect for so long as the notification 
under that sub-section is in force. 

6. Compensation for any necessary damage done under section 4.—(1) Whenever any action of 
the nature described in sub-section (3) of section 4 is to be taken, the competent authority shall, before or 
at  the  time  such  action  is  taken,  pay  or  tender  payment  for  all  necessary  damage  which  is  likely  to  be 
caused, and in case of dispute as to the sufficiency of the amount so paid or tendered or as to the person to 
whom  it  should  be  paid  or  tendered,  he  shall  at  once  refer  the  dispute  to  the  decision  of  the  Central 
Government, and the decision of the Central Government shall be final. 

(2) The  fact  that  there  exists  any  such  dispute  as  is referred  to  in  this  section  shall  not  be  a  bar  to 

action under sub-section (3) of section 4. 

7. Power to acquire land or rights in or over land notified under section 4.—(1) If the Central 

Government  is  satisfied  that  coal  is  obtainable  in  the  whole  or  any  part  of  the  land  notified  under                   
sub-section (1) of section 4, it may, within a period of two years from the date of the said notification or 
within  such  further  period  not  exceeding  one  year  in  the  aggregate  as  the  Central  Government  may 
specify  in  this  behalf,  by  notification  in  the  Official  Gazette,  give  notice  of  its  intention  to  acquire  the 
whole or any part of the land or of any rights in or over such land, as the case may be. 

(2) If no notice to acquire the land or any rights in or over such land is given under sub-section (1) 
within the period allowed thereunder, the notification issued under sub-section (1) of section 4 shall cease 
to have effect on the expiration of three years from the date thereof. 

 8.  Objections  to  acquisition.—(1)  Any  person  interested  in  any  land  in  respect  of  which  a 
notification under section 7 has been issued may, within thirty days of the issue of the notification, object 
to the acquisition of the whole or any part of the land or of any rights in or over such land. 

1.  Subs.  by  Act  51  of  1957,  s.  3,  for  “granted  to  any  person  under  the  Mineral  Concession  Rules  which  authorises                       

him” (w.e.f. 12-6-1957). 

2. The words “granted to any person under the Mineral Concession Rules” omitted by s. 3, ibid. (w.e.f. 12-6-1957).  

3 

                                                           
Explanation.—It shall not be an  objection within the meaning of this section for any person to say 
that he himself desires to undertake mining operations in the land for the production of coal and that such 
operations should not be undertaken by the Central Government or by any other person. 

(2) Every objection under sub-section (1) shall be made to the competent authority in writing, and the 
competent authority shall give the objector an opportunity of being heard either in person or by a legal 
practitioner  and  shall,  after  hearing  all  such  objections  and  after  making  such  further  inquiry,  if  any,                    
as  he  thinks  necessary,  1[either  make  a  report  in  respect  of  the  land  which  has  been  notified  under                  
sub-section  (1)  of  section  7  or  of  rights  in  or  over  such  land,  or  make  different  reports  in  respect  of 
different parcels of such land or of rights in or over such land, to the Central Government, containing his 
recommendations  on  the  objections,  together  with  the  record  of  the  proceedings  held  by  him,  for  the 
decision of that Government.] 

(3) For the purposes of this section, a person shall be deemed to be interested in land who would be 
entitled to claim an interest in compensation if the land or any rights in or over such land were acquired 
under this Act. 

 9. Declaration of acquisition.—(1) When the Central Government is satisfied, after considering the 
report, if any, made under section 8 that any land or any rights in or over such land should be acquired, a 
declaration shall be made by it to that effect 2[, and different declarations may be made from time to time 
in  respect  of  different  parcels  of  any  land,  or  of  rights  in  or  over  such  land,  covered  by  the  same 
notification under sub-section (1) of section 7, irrespective of whether one report or different reports has 
or have been made (wherever required) under sub-section (2) of section 8]: 

3[Provided that no declaration in respect of any particular land, or rights in or over such land, covered 
by a notification under sub-section (1) of section 7, issued after the commencement of the Coal Bearing 
Areas (Acquisition and Development) Amendment and Validation Act, 1971 (54 of 1971), shall be made 
after the expiry of three years from the date of the said notification: 

Provided  further  that,  where  a  declaration]  relates  to  any  land  or  to  any  rights  in  or  over  land 
belonging  to  a  State  Government  which  has  or  have  not  been  leased  out,  no  such  declaration  shall  be 
made except after previous consultation with the State Government. 

(2) 4[Every declaration] shall be published in the Official Gazette, and— 

(a) in any case where land is to be acquired, shall state the district or other territorial division in 
which  the  land  is  situate  and  its  approximate  area;  and,  where  a  plan  shall  have  been  made  of  the 
land, the place where such plan may be inspected; 

(b)  in  any  case  where  rights  in  or  over  such  land  are  to  be  acquired,  shall  state  the  nature  and 

extent of the rights in addition to the matters relating to the land specified in clause (a); and 

a copy of every such declaration shall be sent to the State Government concerned. 

5[9A.  Special  powers  in  cases  of  urgency.—If  the  Central  Government  is  satisfied  that  it  is 
necessary  to  acquire  immediately  the  whole  or  any  part  of  the  land  notified  under  sub-section  (1)  of 
section  4  or  any  rights  in or  over  such  land,  the  Central  Government  may  direct  that  the  provisions  of 
section 8 shall not apply, and if it does so direct, a declaration may be made under section 9 in respect 
thereof at any time after the issue of the notification under section 7.] 

10.  Vesting  of  land  or  rights  in  Central  Government.—(1)  On  the  publication  in  the  Official 
Gazette of the declaration under section 9, the land or the rights in or over the land, as the case may be, 
shall vest absolutely in the Central Government 6[free from all encumbrances]. 

1. Subs. by Act 54 of 1971, s. 2, for certain words (w.e.f. 11-12-1971).  
2. Ins. by s. 3, ibid. (w.e.f 11-12-1971).  
3. Subs. by s. 3, ibid., for “Provided that, where the declaration” (w.e.f. 11-12-1971).  
4. Subs. by s. 3, ibid., for “The declaration” (w.e.f. 11-12-1971).  
5. Ins. by Act 51 of 1957, s. 4 (w.e.f 12-6-1957).  
6. Ins. by s. 5, ibid. (w.e.f. 12-6-1957).  

4 

                                                           
(2)  Where  the  rights  under  any  mining  lease  1[granted  or  deemed  to  have  been  granted  by  a  State 
Government] to any person are acquired under this Act, the Central Government shall, on and  from the 
date of such vesting, be deemed to have become the lessee of the State Government as if a mining lease 
under  the  Mineral  Concession  Rules  had  been  granted  by  the  State  Government  to  the  Central 
Government, the period thereof being the entire period for which such a lease could have been granted by 
the State Government under those rules. 

11.  Power  of  Central  Government  to  direct  vesting  of  land  or  rights  in  a  Government 
company.—(1) Notwithstanding anything contained in section 10, the Central  Government may, if it is 
satisfied  that  a  Government  company  is  willing  to  comply,  or  has  complied,  with  such  terms  and 
conditions as the Central Government may think fit to impose, direct, by order in writing, that the land or 
the  rights  in  or  over  the  land,  as  the  case  may  be,  shall,  instead  of  vesting  in  the  Central  Government 
under  section  10  or  continuing  to  so  vest,  vest  in  the  Government  company  either  on  the  date  of 
publication of the declaration or on such other date as may be specified in the direction. 

(2) Where the rights under any mining lease acquired under this Act vest in a Government company 
under sub-section (1), the Government company shall, on and from the date of such vesting, be deemed to 
have become the lessee of the State Government as if a mining lease under the Mineral Concession Rules 
had  been  granted  by  the  State  Government  to  the  Government  company,  the  period  thereof  being  the 
entire period for which such a lease could have been granted by the State Government under those rules; 
and all the rights and liabilities of the Central Government in relation to the lease or the land covered by it 
shall,  on  and  from  the date  of  such  vesting,  be  deemed  to  have  become  the  rights and liabilities of the 
Government company. 

12.  Power  to  take  possession  of  land  acquired.—The  competent  authority  may,  by  notice  in 
writing,  require  any  person  in  possession  of  any  land  acquired  under  this  Act  to  surrender  or  deliver 
possession of the land within such period as may be specified in the notice, and if a person refuses or fails 
to comply with any such notice, the competent authority may enter upon and take possession of the land, 
and for that purpose may use or cause to be used such force as may be necessary. 

13.  Compensation  for  prospecting  licences  ceasing  to  have  effect,  rights  under  mining  leases 
being acquired, etc.—(1) Where a prospecting licence ceases to have effect under section 5, there shall 
be paid to the person interested compensation, the amount of which shall be a sum made up of all items of 
reasonable and bona fide expenditure actually incurred in respect of the land, that is to say,— 

(i) the expenditure incurred in obtaining the licence; 

(ii)  the  expenditure,  if  any,  incurred  in  respect  of  the  preparation  of  maps,  charts  and  other 
documents relating to the land, the collection from the land of cores or other mineral samples and the 
due analysis thereof and the preparation of any other relevant records or material; 

(iii)  the  expenditure,  if  any,  incurred  in  respect  of  the  construction  of  roads  or  other  essential 

works on the land, if such roads or works are in existence and in a usable condition; 

(iv) the expenditure, if any, incurred in respect of any other operation necessary for prospecting 

carried out in the land. 

(2)  Where  the  rights  under  a  mining  lease  are  acquired  under  this  Act,  there  shall  be  paid  to  the 
person  interested  compensation,  the  amount  of  which  shall  be  a  sum  made  up  of  the  following  items, 
namely,— 

(i) if the lease was granted after prospecting operations had been carried out in respect of the land 
under  a  prospecting  licence,  the  sum  of  all  items  of  reasonable  and  bona  fide  expenditure  actually 
incurred with respect to the matters specified in clauses (i), (ii), (iii) and (iv) of sub-section (1) before 
the date of the lease: 

1. Subs. by Act 51 of 1957, s. 5, for “granted by a State Government” (w.e.f. 12-6-1957). 

5 

                                                           
Provided  that  where  two  or  more  leases  had  been  granted  in  relation  to  any  land  covered 
previously by one prospecting licence, only so much of the expenditure aforesaid as bears to the total 
expenditure the same proportion as the area under the mining lease in respect of which the rights have 
been acquired bears to the total area covered by the mining leases shall be payable under this clause; 

(ii) any reasonable and bona fide expenditure of the nature referred to in clauses (i), (ii) and (iii) 
of sub-section (1) actually incurred in relation to the lease, together with the salami, if any, paid for 
obtaining the lease; 

(iii) the expenditure, if any, incurred by way of payment of dead-rent or minimum royalty during 

any year or years when there was no production of coal; 

(iv) interest on any such expenditure referred to in clauses (i), (ii) and (iii) as has actually been 
incurred 1[up to] the year in which the rights under the lease are acquired, interest being calculated in 
the following manner, that is to say,— 

interest at the rate of five per centum per annum in respect of the expenditure incurred during 
each calendar year for the first five years commencing from the year in which such expenditure 
was incurred plus interest at the rate of four per centum per annum in respect of each subsequent 
year after the expiration of the first five years and ending with the year in which the rights under 
the lease are acquired: 

Provided that the  total sum  payable  under this  clause  shall  not exceed  one-half  of the  total amount 

referred to in 2[clauses (i), (ii) and (iii)]. 

(3) Where the rights under a mining lease acquired under section 9 relate only  to a part of the land 
covered  by  the  mining  lease,  the  amount  of  compensation  payable  shall  be  such  as  bears  to  the  total 
compensation which would have been payable if the rights of the mining lessee in respect of the entire 
land had been acquired, the same proportion which the area of the land in respect of which the rights are 
acquired bears to the total area of the land covered by the mining lease. 

(4) Where a mining lease ceases to have effect for any period under clause (b) of section 5, there shall 
be  paid  by  way  of  compensation for the period  during  which the  lease  so  ceased  to  have  effect,  a  sum 
equivalent  to  five  per  centum  of  any  such  expenditure  as  is  referred  to  in  clauses  (i)  and  (iii)  of                      
sub-section (2) for each year during which the lease remains suspended. 

(5)  Where  any  land  is  acquired  under  section  9,  there  shall  be  paid  compensation  to  the  person 

interested the amount of which shall be determined after taking into consideration— 

(a)  the  market  value  of  the  land  at  the  date  of  the  publication  of  the  notification  under                          

sub-section (1) of section 4; 

Explanation.—The value of any minerals lying in the land shall not be taken into consideration in 

determining the market value of any land; 

(b) the damage sustained by the person interested, by reason of the taking of any standing crops 

or trees which may be on the land at the time of the taking possession thereof; 

(c) the damage, if any, sustained by the person interested, at the time of taking possession of the 

land, by reason of severing such land from other land; 

(d) the damage, if any, sustained by the person interested, at the time of taking possession of the 
land,  by  reason  of  the  acquisition  injuriously  affecting  his  other  immovable  property  in  any  other 
manner, or his earnings; 

(e) if, in consequence of the acquisition of the land, the person interested is compelled to change 

his residence or place of business, the reasonable expenses, if any, incidental to such change; and 

1. Subs. by Act 51 of 1957, s. 6, for “during the period commencing from the date of the lease and ending with” (w.e.f. 12-6-1957).  
2. Subs. by s. 6, ibid., for “clauses (ii) and (iii)” (w.e.f. 12-6-1957).  

6 

                                                           
(f) the damage, if any, bona fide resulting from diminution of the profits of the land between the 
time  of  the  publication  of  the  notification  under  sub-section  (1)  of  section  4  and  the  time  of  the 
publication of the declaration under sub-section (2) of section 9. 
1[(5A) In determining the amount of compensation for any land acquired under section 9, any increase 
to  the  value  of  the  other  land  of  the  person  interested,  likely  to  accrue  from  the  use  to  which  the  land 
acquired will be put shall not be taken into consideration.] 

(6) Where any operation carried on by or on behalf of the Central Government in the exercise of any 
powers conferred by this Act causes or is likely to cause damage to the surface of any land or any works 
thereon and in respect thereof no provision for compensation is made elsewhere in this Act, the competent 
authority shall pay or tender payment for all such damage, and, in case of dispute as to the sufficiency of 
the amount so paid or tendered or as to the person to whom it is to be paid or tendered, he shall refer the 
dispute to the decision of the Tribunal. 

(7) No compensation under this section in relation to maps, charts and other documents shall be paid 
unless the person to whom it is payable has delivered to the prescribed authority all the maps, charts and 
other documents. 

14.  Method  of  determining  compensation.—(1)  Where  the  amount  of  any  compensation  payable 

under this Act can be fixed by agreement, it shall be paid in accordance with such agreement. 

(2)  Where  no  such  agreement  can  be  reached,  the  Central  Government  shall  constitute  a  Tribunal 
consisting of a person who is or has been or is qualified to be a Judge of a High Court for the purpose of 
determining the amount. 

(3) The Central Government may in any particular case nominate a person having expert knowledge 
in mining to assist the Tribunal, and where such nomination is made, the person or persons interested may 
also nominate any other person for the same purpose. 

(4)  At  the  commencement  of  the  proceedings  before  the  Tribunal  the  Central  Government  and  the 

person interested shall state what in their respective opinions is a fair amount of compensation. 

(5)  The  Tribunal  shall  after  hearing  the  dispute,  make  an  award  determining  the  amount  of 
compensation which appears to it to be just, and specify the person or persons to whom the compensation 
shall be paid; and in making the award the Tribunal shall have regard to the circumstances of each case 
and  to  the  foregoing  provisions  of  this  Act  with  respect  to  the  manner  in  which  the  amount  of 
compensation shall be determined in so far as the said provisions or any of them may be applicable. 

(6)  Where  there  is  a  dispute  as  to  the  person  or  persons  entitled  to  compensation  and  the  Tribunal 
finds  that  more  persons  than  one  are  entitled  to  compensation,  it  shall  apportion  the  amount  thereof 
among such persons and in such manner as it thinks fit. 

(7)  Nothing  in  the  Arbitration  Act,  1940  (10  of  1940),  shall  apply  to  any  proceedings  under  this 

section. 

2[(8)  The  Tribunal,  in  the  proceedings  before  it,  shall  have  all  the  powers  which  a  civil  court  has 
while  trying  a  suit  under  the  Code  of  Civil  Procedure,  1908  (5  of  1908),  in  respect  of  the  following 
matters, namely:— 

(i) summoning and enforcing the attendance of any person and examining him on oath; 

(ii) requiring the discovery and production of any document; 

(iii) reception of evidence on affidavits; 

(iv) requisitioning any public record from any court or office; and 

(v) issuing commissions for examination of witnesses.] 

15.  Costs.—Every  award made  by  the Tribunal  shall  also  state  the  amount of costs  incurred  in  the 

proceedings before it and by what persons and in what proportions they are to be paid. 

1. Ins. by Act 54 of 1971, s. 4 (w.e.f. 11-12-1971).  
2. Ins. by s. 5, ibid. (w.e.f. 11-12-1971).  

7 

                                                           
16.  Interest  on  awards.—If  the  sum  which  in  the  opinion  of  the  Tribunal  ought  to  have  been 
awarded as compensation is in excess of the sum which the Central Government has stated to be a fair 
amount  of  compensation,  the  award  of  the  Tribunal  may  direct  that  the  Central  Government  shall  pay 
interest on such excess at the rate of five per centum per annum from the date on which it became payable 
to the date of payment of such excess. 

17. Payment of compensation.—(1) Any compensation payable under this Act may be tendered or 
paid  to  the  persons  interested  entitled  thereto,  and  the  Central  Government  shall  pay  it  to  them  unless 
prevented by some one or more of the contingencies mentioned in sub-section (2). 

(2) If the persons interested entitled thereto shall not consent to receive it or if there be any dispute as 
to the sufficiency of the amount of compensation or the title to receive it or the apportionment thereof, the 
Central Government shall deposit the amount of compensation with the Tribunal: 

Provided that any person admitted to be interested may receive such payment under protest as to the 

sufficiency of the amount: 

1[Provided further that every person who claims to be an interested person (whether such person has 
been admitted to be interested or not) including the person referred to in the preceding proviso shall be 
entitled to prefer a claim for compensation before the Tribunal: 

Provided  also  that  no  person  who  has  received  the  amount  otherwise  than  under  protest  shall  be 

entitled to prefer any such claim before the Tribunal.] 

(3) When the amount of compensation is not paid or deposited as required by this section, the Central 
Government shall be liable to pay interest thereon at the rate of five per centum per annum from the time 
the compensation became due until it shall have been so paid or deposited. 

18. Prospecting and mining to be done by Central Government in conformity with the Mineral 
Concession  Rules.—Where  prospecting  is  done  under  this  Act  by  or  on  behalf  of  the  Central 
Government  in  any  land  situate  within  the  jurisdiction  of  a  State  Government  or  where  the  Central 
Government or a Government company has become the lessee of a State Government in respect of any 
land under this Act, the terms and conditions under which the prospecting can be done or rights under the 
lease exercised shall, as far as may be, be the same as the terms and conditions applicable to prospecting 
licences and mining leases under the Mineral Concession Rules; and in case of doubt or dispute, shall be 
settled by arbitration or in such other manner as the Central Government and the State Government may 
decide. 

2[18A. Payment to State Governments in lieu of royalty.—Notwithstanding anything contained in 
this Act, where any land or any rights in or over land belonging to a State Government (other than the 
rights  under  a  mining  lease  granted  or  deemed  to  have  been  granted  by  the  State  Government  to  any 
person) vest in the Central Government under section 10 or in a Government Company under section 11, 
the Central Government or the Company, as the case may be, may pay to the State Government such sum 
of money as would have been payable as royalty by a lessee had such land or rights been under a mining 
lease granted by the State Government.] 

19. Power to delegate.—The Central Government may, by notification in the Official Gazette, direct 
that all or any of the powers or duties which may be exercised or discharged by it under this Act shall, in 
such circumstances and under such conditions, if any, as may be specified in the notification, be exercised 
or discharged also by any person specified in this behalf in the notification and any such person may, with 
the previous approval of the Central Government, by order in writing, direct that any power or duty which 
has  been  directed  to  be  exercised  or  discharged  by  him  shall,  in  such  circumstances  and  under  such 
conditions, if  any,  as  may  be  specified in the  direction,  be  exercised  or  discharged  by  any  such  person 
subordinate to him as may be specified therein. 

1. Subs. by Act 54 of 1971, s. 6, for the second proviso (w.e.f. 11-12-1971).  
2. Ins. by s. 7, ibid. (w.e.f. 11-12-1971).  

8 

                                                           
20. Appeals.—(1) Any person aggrieved by any award of the Tribunal under section 14 may, within 
thirty days from the date of such award, prefer an appeal to the High Court within whose jurisdiction the 
land or some portion of the land which has been acquired or the land or some portion of the land covered 
by  a  prospecting  licence  or  by  a  mining  lease  in  respect  of  which  mining  rights  have  been  acquired  is 
situate. 

(2) Any person aggrieved by an order made by a competent authority or by any other person in virtue 
of any powers exercisable by him under this Act may, within twenty-one days from the date of the order, 
prefer an appeal to the Central Government. 

(3)  On  receipt  of  an  appeal  under  sub-section  (2),  the  Central  Government  may,  after  calling  for  a 
report from the competent authority of person concerned, and giving an opportunity to the parties to be 
heard, and after making such further inquiry as may be necessary, pass such orders as it thinks fit, and the 
order of the Central Government shall be final. 

(4)  Where  an  appeal  is  preferred  under  sub-section  (2),  the  Central  Government  may  stay  the 
enforcement  of  the  order  of  the  competent  authority  or  person  concerned  for  such  period  and  on  such 
conditions as it thinks fit. 

 21. Power to obtain information.—The Central Government or any person authorised in writing by 
it  in  this  behalf  may,  by  order  in  writing,  require  any  person  to  furnish  to  such  authority  as  may  be 
specified in the order such information in his possession as may be required relating to any property in 
respect of which action is proposed to be taken under this Act. 

 22. Power to enter and inspect.—The competent authority, or any person authorised in writing by it 
in  this  behalf,  by  general  or  special  order,  may  enter  and  inspect  any  property  for  the  purpose  of 
determining whether and, if so, in what manner an order under this Act should be made in relation to any 
property or with a view to securing compliance with any order made under this Act. 

23.  Penalties.—Whoever  wilfully  obstructs  any  person  in  doing  any  of  the  acts  authorised  by                 

sub-section  (3)  of  section  4  or  wilfully  fills  up,  destroys,  damages  or  displaces  any  mark  made  under 
section 4, or wilfully obstructs the lawful exercise of any other power conferred by or under this Act, or 
fails  to  comply  with  any  order  made  or  direction  given  under  this  Act,  shall  be  punishable  with 
imprisonment which may extend to six months, or with fine which may extend to one thousand rupees, or 
with both. 

24.  Service  of  notices  and  orders.—Subject  to  any  rules  that  may  be  made  under  this  Act,  every 

notice or order issued or made under this Act shall— 

(a)  in  the  case  of  a  notice  or  order  of  a  general  nature  or  affecting  a  number  of  persons,  be 
notified  in  the  Official  Gazette  and  also  published  in  the  locality  in  such  manner  as  may  be 
prescribed; and 

(b) in the case of a notice or order directed to an individual 1[be served on such individual],— 

(i) wherever it is practicable to do so by delivering or tendering it to that individual; or 

(ii)  if  it  cannot  be  so  delivered  or  tendered,  by  affixing  it  on  the  door  or  some  other 
conspicuous part of the residence in which that individual lives, and a written report thereof shall 
be prepared and witnessed by two persons living in the neighbourhood; or 

(iii) failing service by these means, by post. 

25.  Protection  of  action  taken  in  good  faith.—(1)  No  suit,  prosecution  or  other  legal  proceeding 
shall  lie  against  the  Central  Government  or  any  person  for  anything  which  is  in  good  faith  done  or 
intended to be done in pursuance of this Act or any rule or order made thereunder. 

1. Ins. by Act 58 of 1960, s. 3 and the Second Schedule (w.e.f. 26-12-1960). 

9 

                                                           
  
(2)  No  suit  or  other  legal  proceeding  shall  lie  against  the  Central  Government  or  the  competent 
authority or any other person for any damage caused or likely to be caused by anything which is in good 
faith done or intended to be done in pursuance of this Act or any rule or order made thereunder.   

26.  Jurisdiction  of  civil  courts.—Save  as  otherwise  expressly  provided  in  this  Act,  no  civil  court 
shall have jurisdiction in respect of any matter which the Central Government or the competent authority 
or any other person is empowered by or under this Act to determine. 

27. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette, 

make rules for carrying out the purposes of this Act. 

(2)  In  particular  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 

provide for all or any of the following matters, namely:— 

(a) the procedure to be followed in making any inquiry under this Act; 

(b) the procedure to be followed by the Tribunal in proceedings under section 14; 

(c)  the  form  and  manner  in  which  appeals to  the  Central  Government  may  be  made  under  this 

Act; and 

(d) any other matter which has to be, or may be, prescribed. 

1[(3) Every rule made by the Central Government under this Act shall be laid, as soon as may be after 
it is made, before each House of Parliament, while it is in session, for a total period of thirty days which 
may be comprised in one session or in two or more successive sessions, and if, before the expiry of the 
session  immediately  following  the  session  or  the  successive  sessions  aforesaid,  both  Houses  agree  in 
making any modification in the rule or both Houses agree that the rule should not be made, the rule shall 
thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that 
any such modification or annulment shall be without prejudice to the validity of anything previously done 
under that rule.] 

28.  Notifications  under  Act  1  of  1894  in  which  proceedings  are  pending  to  be  treated  as 
notifications  under  this  Act.—(1)  Every  notification  issued  before  the  commencement  of  this  Act, 
whether by the Central Government or by a State Government, under section 4 of the Land Acquisition 
Act, 1894 (1 of 1894) (hereinafter referred to as the said Act), in which lands were stated to be needed for 
the prospecting of coal seams for the development of collieries to be worked by the Union of India shall 
be deemed to have been issued by the Central Government under section 4 of this Act as if this Act had 
been in force on the date of the notification. 

(2)  Every  notification  issued  before  the  commencement  of  this  Act,  whether  by  the  Central 
Government or by a State Government, under section 6 of the said Act in which lands were stated to be 
needed for the development of coal shall be deemed to have been issued under section 9 of this Act as if 
this Act had been in force on the date of the notification. 

(3) Any objection preferred under section 5A of the said Act in respect of any land covered by any 
notification  issued  under  section  4  of  the  said  Act  shall  be  deemed  to  be  an  objection  preferred  under 
section  8  of  this  Act  to  the  relevant  competent  authority  and  may  be  2[disposed  of  by  him  as  if  the 
objection had been made in relation to a notification issued under section 7 of this Act 3[in respect of such 
land]  or  of  any  rights  in  or  over  such  land;  and  the  Central  Government  may  at  any  time  make  a 
declaration under section 9 of this Act in respect of the land or any part thereof or any rights in or over 
such land or part]. 

1. Subs. by Act 4 of 2005, s. 2 and the Schedule, for sub-section (3) (w.e.f. 11-1-2005).  
2. Subs. by Act 51 of 1957, s. 7, for “disposed of by him accordingly” (w.e.f. 12-6-1957).  
3. Subs. by Act 23 of 1969, s. 2, for certain words (w.e.f. 12-8-1969).  

10 

                                                           
1[(3A) Where in respect of any land covered by any notification issued under section 4 of the said Act, 
no objection has been preferred under section 5A thereof within the period specified in that section, then 
it shall be deemed that a notification had been issued under section 7 of this Act in respect of such land or 
of any rights in or over such land and that no objection to the acquisition of the land or any rights in or 
over  the  land  had  been  preferred  under  section  8  of  this  Act,  and  accordingly  the  Central  Government 
may at any time make a declaration under section 9 of this Act in respect of the land or any part thereof or 
any rights in or over such land or part.] 

(4)  Subject  to  the  other  provisions  contained  in  this  section,  the  provisions  of  this  Act  (including 
provisions  relating  to  compensation)  shall  apply  in  relation  to  any  such  notification  as  is referred  to in 
sub-section (1) or sub-section (2) as they apply in relation to any notification issued under section 4 or 
section 9, as the case may be, of this Act. 

1. Ins. by Act 23 of 1969, s. 2 (w.e.f. 12-8-1969).  

11 

 
 
                                                           
